The median home price increased 1.9% in February from January to $275,000. That was unchanged from the same month a year earlier, according to DataQuick Information Systems of San Diego.
Sales climbed 2.1% in February, the first hike in 3 months, after being down 0.6% in January and down 6.4% from February 2010. Nevertheless, a total of 14,369 newly built and previously owned houses and condominiums sold in Southern California last month, the lowest for a February since 2008.
Robert Kleinhenz, deputy chief economist with the California Assn. of Realtors, said that there seems to be a lot of pent-up demand. Once the economy improves and people begin to feel more confident about their employment situations, then sales could increase significantly. Aside from their concerns over the direction of the economy, potential buyers face difficulties getting a mortgage.
Earlier we saw house flippers dominate the foreclosure market, these days everyone with cash is jumping into real estate as an investment to try to beat inflation. Cash-heavy investors are likely to continue to constitute a big part of the market in coming months because these buyers can close deals faster than regular buyers, who must wait for their loans to be approved by banks.
Investors scooping up properties at low price points are keeping prices down. The numbers on a rental condo seem to be crunching out at these levels showing a rough 6-7% back-of-napkin return. An average two bedroom condo rents for about $1400-$1500, and can be acquired for between $190,000-$210,000 at this time. Annual property taxes are between 1.1-1.25% of sales price. HOA dues at about $250/month on average. Annual insurance on a condo for rent policy runs about $160/month. Of course, specific numbers are different. Please give me a call if you are thinking of investing and I can answer your questions regarding actual costs based on the specific location of the condo.
For Buying or Selling, You Need a professional that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Tuesday, March 29, 2011
Thursday, March 10, 2011
Five Signs That Say 'Buy' .
From Coldwell Banker Marketing Dept. original article by M.P. McQueen, WSJ.
Home buyers sitting on the fence wondering if now is the right time to buy should consider five factors when making this decision: Jobs, recent sales activity, construction, mortgage availability, and anecdotal evidence. Each of these issues can help consumers make the best choice for their situation and financial circumstance.
Jobs: Although many areas of the country were deeply impacted by the recession, some areas were less affected by job loss. If employment stability is a concern, prospective buyers should review job-growth data from the U.S. Bureau of Labor Statistics at www.bls.gov. The data provided by the Bureau is approximately one month old and shows the direction of the local economy.
Recent Sales Activity: Housing inventory and sales volume should be taken into consideration while house hunting. A large inventory of homes with few actual transactions can be a negative indicator. On the other hand, if inventory is falling and transactions are rising, that is a good sign. In January, the CALIFORNIA ASSOCIATION OF REALTORS®’ Unsold Inventory Index stood at 6.7 months, up from 5 months in December 2010, but down from 5.7 months in January 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Construction: Staying up-to-date on the number of building permits issued for local builders is useful for gauging builder sentiment and the future of housing activity. The California Building Industry Association recently announced that California homebuilders pulled 2,920 total housing permits in January, registering a 5-percent decline compared with a year ago and a 56-percent decline compared with December. However, the Construction Industry Research Board is projecting 62,000 total permits will be pulled in 2011, an increase of 38 percent compared with 2010’s total of 44,893 permits.
Mortgage Availability: Home buyers hoping to be approved for a mortgage should monitor local lending patterns. Following the financial crisis, most national banks tightened lending standards; however, some local banks haven’t been impacted as much as large lenders and are more willing to lend, even for higher-priced homes.
Anecdotal Evidence: Although buyers can access home listings online, one of the best ways to monitor the local housing market is to work with a REALTOR® and gather intelligence using their expertise and guidance.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Home buyers sitting on the fence wondering if now is the right time to buy should consider five factors when making this decision: Jobs, recent sales activity, construction, mortgage availability, and anecdotal evidence. Each of these issues can help consumers make the best choice for their situation and financial circumstance.
Jobs: Although many areas of the country were deeply impacted by the recession, some areas were less affected by job loss. If employment stability is a concern, prospective buyers should review job-growth data from the U.S. Bureau of Labor Statistics at www.bls.gov. The data provided by the Bureau is approximately one month old and shows the direction of the local economy.
Recent Sales Activity: Housing inventory and sales volume should be taken into consideration while house hunting. A large inventory of homes with few actual transactions can be a negative indicator. On the other hand, if inventory is falling and transactions are rising, that is a good sign. In January, the CALIFORNIA ASSOCIATION OF REALTORS®’ Unsold Inventory Index stood at 6.7 months, up from 5 months in December 2010, but down from 5.7 months in January 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
Construction: Staying up-to-date on the number of building permits issued for local builders is useful for gauging builder sentiment and the future of housing activity. The California Building Industry Association recently announced that California homebuilders pulled 2,920 total housing permits in January, registering a 5-percent decline compared with a year ago and a 56-percent decline compared with December. However, the Construction Industry Research Board is projecting 62,000 total permits will be pulled in 2011, an increase of 38 percent compared with 2010’s total of 44,893 permits.
Mortgage Availability: Home buyers hoping to be approved for a mortgage should monitor local lending patterns. Following the financial crisis, most national banks tightened lending standards; however, some local banks haven’t been impacted as much as large lenders and are more willing to lend, even for higher-priced homes.
Anecdotal Evidence: Although buyers can access home listings online, one of the best ways to monitor the local housing market is to work with a REALTOR® and gather intelligence using their expertise and guidance.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Tuesday, March 1, 2011
Historically, California Real Estate Has Been a Strong, Long-Term Investment
Historically, California Real Estate Has Been a Strong, Long-Term Investment
Okay, so the word is out:
It’s not a great time for flipping houses. While just two years ago it made great TV and even better headlines as many homeowners realized significant earnings on the sale of their property, the market has certainly changed and people looking to make easy money in real estate may have to look harder, longer and closer at their choices. But for people who view real estate as the foundation for a long-range financial plan, there may be no time like the present to buy.
Just the Facts
While year to year fluctuations are normal, historically real estate has remained one of the best performing and consistent long-term investments. Real estate like all investments is cyclical in nature, markets go up and markets fall, but, if you look at real estate – especially in California – as a long-term investment, you should consider the following:
National Figures
• According to the National Association of Realtors®, median existing U.S. home sale prices have increased on average 6.5% each year from 1972 through 2005 and 88.5% over the last 10 years.
California
• Looking at the last 37 years of real estate in California, we have seen very few times in which real estate values have dropped.
• According to the California Association of Realtors®, since 1970 the real estate market in California has only dropped seven times, six times under 3.7% and only once at 4.5%.
• In 1970 the median cost of a singlefamily home in California was $26,000.
• Today, 37 years later, California homes have seen a 2,165% increase as the median cost of a home is now $588,970.
The Bottom Line
The current housing market offers a unique window of opportunity for confident buyers. The exciting news is that for the first time in quite a while the stars are in alignment for consumers, mortgage rates remain low (certainly by historical standards) and there is a large selection of homes to choose from. There may be no time like the present to buy. I am providing you with this information so that you can make an informed decision about the current market. In the last 15 years, we’ve seen very few opportunities in which buyers can prevail and now truly is the time. If you’d like to discuss your opportunities in relation to the current real estate market, please contact me today.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
Okay, so the word is out:
It’s not a great time for flipping houses. While just two years ago it made great TV and even better headlines as many homeowners realized significant earnings on the sale of their property, the market has certainly changed and people looking to make easy money in real estate may have to look harder, longer and closer at their choices. But for people who view real estate as the foundation for a long-range financial plan, there may be no time like the present to buy.
Just the Facts
While year to year fluctuations are normal, historically real estate has remained one of the best performing and consistent long-term investments. Real estate like all investments is cyclical in nature, markets go up and markets fall, but, if you look at real estate – especially in California – as a long-term investment, you should consider the following:
National Figures
• According to the National Association of Realtors®, median existing U.S. home sale prices have increased on average 6.5% each year from 1972 through 2005 and 88.5% over the last 10 years.
California
• Looking at the last 37 years of real estate in California, we have seen very few times in which real estate values have dropped.
• According to the California Association of Realtors®, since 1970 the real estate market in California has only dropped seven times, six times under 3.7% and only once at 4.5%.
• In 1970 the median cost of a singlefamily home in California was $26,000.
• Today, 37 years later, California homes have seen a 2,165% increase as the median cost of a home is now $588,970.
The Bottom Line
The current housing market offers a unique window of opportunity for confident buyers. The exciting news is that for the first time in quite a while the stars are in alignment for consumers, mortgage rates remain low (certainly by historical standards) and there is a large selection of homes to choose from. There may be no time like the present to buy. I am providing you with this information so that you can make an informed decision about the current market. In the last 15 years, we’ve seen very few opportunities in which buyers can prevail and now truly is the time. If you’d like to discuss your opportunities in relation to the current real estate market, please contact me today.
For Buying or Selling, You Need a Guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.
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